§ Mr. Alfred MorrisTo ask the Secretary of State for Social Security what have been the annual savings to his Department in constant prices of ending the link between disability benefit and average earnings. [1417]
§ Mr. BurtThe link between invalidity benefit and earnings was broken in 1980 to ensure that long-term provision of benefit based on incapacity should be sustainable.
The additional costs which would have been incurred had invalidity benefit been increased by average earnings are set out in the table.
Year Additional cost 1996–97 prices £ million 1980–81 5 1981–82 35 1982–83 45 1983–84 55 1984–85 110 1985–86 125 1986–87 205 1987–88 315 1988–89 410 1989–90 505 1990–91 595 1991–92 685 1992–93 860 1993–94 985 1994–95 1,055
- 1. Estimates cover invalidity pension and adult dependency increases only.
- 2. Estimates rounded to nearest £5 million.
- 3. Estimates converted to 1996–97 prices using the GDP deflator.
- 4. Other benefit offsets estimated using family expenditure survey data.